Next Technology (NASDAQ:NXTT) and D-Wave Quantum (NYSE:QBTS) Critical Analysis

Next Technology (NASDAQ:NXTT) and D-Wave Quantum (NYSE:QBTS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Next Technology and D-Wave Quantum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Next Technology	0	0	0	0	0.00
D-Wave Quantum	0	0	6	0	3.00

D-Wave Quantum has a consensus target price of $2.63, suggesting a potential upside of 76.17%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, analysts clearly believe D-Wave Quantum is more favorable than Next Technology.

Insider & Institutional Ownership

2.7% of Next Technology shares are owned by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are owned by institutional investors. 37.5% of Next Technology shares are owned by insiders. Comparatively, 7.2% of D-Wave Quantum shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Next Technology has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Next Technology and D-Wave Quantum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Next Technology	N/A	59.37%	53.88%
D-Wave Quantum	-783.28%	N/A	-134.62%

Earnings and Valuation

This table compares Next Technology and D-Wave Quantum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Next Technology	$1.13 million	16.93	-$9.92 million	N/A	N/A
D-Wave Quantum	$9.42 million	31.85	-$82.71 million	($0.42)	-3.55

Next Technology has higher earnings, but lower revenue than D-Wave Quantum.

About Next Technology

Next Technology Holding Inc. provides technical services and solutions through its social e-commerce platform primarily in Mainland China. It offers YCloud, a micro-business cloud intelligent internationalization system that conducts multi-channel data analysis through the learning of big data and social recommendation relationships, as well as provides users with AI fission and management systems, and supply chain systems. The company’s YCloud system also provides micro-business owners with various payment methods, such as Alipay, WeChat, and UnionPay. In addition, it offers chatGPT technical services; and technical system support, software development, and services. The company serves individual and corporate users in the micro business industry. It also has operations in Hong Kong and Singapore. The company was formerly known as WeTrade Group, Inc. and changed its name to Next Technology Holding Inc in April 2024. Next Technology Holding Inc. was incorporated in 2019 and is headquartered in Beijing, the People Republic of China.

About D-Wave Quantum

D-Wave Quantum Inc. develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community. It also provides D-Wave Launch, a quantum professional service that guides enterprises from problem discovery through production implementation. The company's quantum solutions are used in logistics, financial services, drug discovery, materials sciences, scheduling, fault detection, mobility, and supply chain management. It serves financial services, manufacturing/logistics, mobility, and life sciences/pharmaceuticals industries. D-Wave Quantum Inc. was founded in 1999 and is headquartered in Burnaby, Canada.